Guides
Are solar panels covered by homeowners insurance?
Owned roof-mounted solar is usually covered as part of the dwelling. Ground mounts, leased systems and hail losses work differently. Tell your insurer first.
Solar panels you own and that are mounted on your roof are generally covered as part of the dwelling (Coverage A) under a standard homeowners policy, against the same perils as the rest of the house. Ground-mounted arrays and panels on a detached garage usually fall under the smaller other structures limit, and panels you lease may belong to someone else's insurance. In every case, tell your insurer before the installer starts work, because the system changes what it costs to rebuild your house.
This guide describes the ISO homeowners form (HO 00 03 05 11) as a model. Your insurer's own form, its endorsements and your state's rules control, so the declarations page and policy text are the final word.
Where panels sit in the policy
In the ISO HO-3, Coverage A insures "the dwelling on the residence premises, including structures attached to the dwelling." Panels bolted to the roof are attached, and the insurer treats them as part of the building, which is how Nationwide and Kin Insurance describe it on their own consumer pages. There is typically no separate sublimit for them. They are subject to whatever your dwelling limit is, and to the same deductible as other damage of the same cause.
Ground-mounted arrays are different. Coverage B insures other structures "set apart from the dwelling by clear space," and the ISO wording adds that a structure connected only by "a fence, utility line, or similar connection" still counts as set apart. A ground array wired to the house is that kind of structure. Its limit is 10% of Coverage A in the ISO form. Say your dwelling limit is $350,000: the other structures limit is $35,000, and the same pool also has to pay for your fence, shed and detached garage (Other structures coverage (Coverage B): fences, sheds and garages).
| Setup | Where it usually falls | What to check |
|---|---|---|
| Owned, on the roof | Coverage A (dwelling) | Is the dwelling limit high enough with the system included? |
| Owned, ground mount, pole mount or carport | Coverage B (other structures), typically 10% of Coverage A | Does the 10% leave room after the garage and fence? Is a higher limit available? |
| Leased or power purchase agreement | Depends on the contract | Who insures the equipment, and what you owe if it is damaged |
| Portable solar generator | Coverage C (personal property) | Ordinary contents rules apply |
Owned versus leased
If you bought the system, you insure it. If a solar company owns it under a lease or power purchase agreement, the company usually insures the equipment, though Kin's consumer page cautions that some providers require you to carry your own coverage and tells owners to read the lease. Whichever side holds the policy, three questions remain open until you see the paper:
- Who pays to repair the panels after hail, wind or a fire, and does the lease make you liable for what the lessor's policy does not pay?
- If damage to your roof requires the array to come off, who pays to remove and reinstall it?
- Does the lessor need to be named on your policy as an additional interest?
Get the answers in writing from the installer or lessor. If the contract leaves a gap, your insurer will not fill it, since your policy covers property you own and the structure you live in.
Tell your insurer before installation
The NAIC's consumer guidance says some insurers cover solar installations and some do not, that adding them can raise policy cost significantly, and that you should ask your insurer about coverage before you install (NAIC, April 2020). Practically, a call to your agent should cover four points.
- The dwelling limit. A system adds replacement cost. If the limit does not go up, you are insuring a house that now costs more to rebuild than the limit says. Under the ISO form, the insurer pays replacement cost on a building only if it is insured to at least 80% of replacement cost, and the shortfall reduces the payout. See insurance to value and Dwelling coverage (Coverage A) explained. The home replacement cost estimator can show the effect of adding the system's installed cost.
- Roof age and condition. Putting panels on a roof near the end of its life makes a claim awkward and a replacement expensive, because panels must come off first. If an insurer treats an older roof as a problem, see roof age limits: when insurers won't cover an old roof. The cheaper path is usually to replace a tired roof before the array goes up.
- Roof settlement. If your policy has an ACV roof endorsement or a payment schedule for roofs, ask whether it applies to the panels or only to the shingles, and whether panel removal costs are paid at full cost or reduced. The answer may vary by insurer.
- Liability and the utility. If you connect to the grid under net metering, the utility or municipality may require a minimum liability coverage level. The NAIC notes governments often require or encourage extra liability coverage for net metering. Ask what your utility requires before it connects the system, and whether a personal umbrella is the simplest way to meet it.
Nationwide's consumer page adds that systems such as solar carports or ground-mounted panels may need a rider or a separate policy, depending on the policy and the size of the system. There is no uniform answer across insurers, which is why you ask before you sign.
Hail, wind and fire
Panels are glass in an exposed place. According to the U.S. Department of Energy's Federal Energy Management Program, severe hail is the largest source of insured losses on solar systems worldwide, and large hail over 1¾ inches (44 mm) has caused significant module damage in the past. The same guidance notes that the standard module hail test, using one-inch ice balls, is not enough in severe-hail areas, and it recommends checking the module's glass thickness and whether it has been tested at larger sizes (DOE FEMP). If you live where hail is common, ask the installer what hail rating the modules carry and read hail damage claims: roofs, siding and windows for how wind/hail deductibles and roof endorsements affect the claim.
Your homeowners policy treats a hail, wind or fire loss to the panels like any other loss to the dwelling. Several other situations land differently:
- Faulty installation. The ISO form excludes loss caused by faulty, inadequate or defective workmanship, construction or maintenance, though a covered peril that follows from it can still be paid. A roof leak that traces to poor flashing is the installer's problem and warranty, not a clean insurance claim.
- Wear and tear. Panels degrade slowly over decades, and the form excludes wear and tear. Gradual power loss is a warranty issue, not an insurance claim.
- Microcracks after a storm. DOE advises shutting a damaged system down and inspecting it before repowering, since hidden cracks can grow and add hot-spot and fire risk. Report hail or wind damage promptly and keep the installer's inspection report. It supports your claim and is evidence for the adjuster.
- Fire. Electrical fires originating in solar equipment are a covered fire loss under the dwelling coverage, but the insurer may pursue the installer or manufacturer if a defect caused it. See fire and smoke damage: how homeowners insurance responds.
When the roof has to come off
A common claim has nothing to do with the panels. Hail ruins the shingles, the roof needs replacing, and the array must be removed and reinstalled. A good estimate for a roof with solar includes that labor, and often an electrician's time and a permit or inspection. Insurers differ on how they price these steps, so expect a discussion. Get a quote from the solar installer itself and send it to the adjuster as part of the scope, as you would any contractor estimate (xactimate, contractor bids and estimate disputes).
A hypothetical shows how the pieces add up. Say your dwelling limit is $375,000 after you notified your insurer of the system, and the wind/hail deductible is 1%, or $3,750. Hail damages the roof and six modules.
| Item | Cost (hypothetical) |
|---|---|
| Roof replacement | $16,000 |
| Removing and reinstalling the array | $4,200 |
| Six damaged modules | $3,000 |
| Total | $23,200 |
| Less deductible | $3,750 |
| Insurer pays, if the roof is settled at replacement cost | $19,450 |
If the same roof carried a payment schedule that pays 50% of replacement cost, the roof line would fall to $8,000 and the check would shrink with it, which is why the roof settlement terms drive a solar claim as much as the panels' own coverage does. See Roof payment schedules and ACV roof endorsements.
Rebuilding costs and the bigger picture
A solar system is one more thing that costs more to replace each year, along with the rest of the structure (inflation, rebuilding costs and underinsurance explains why). If you install a battery or a vehicle charger alongside it, that equipment has its own insurance questions, covered in EV chargers and home batteries: insurance questions. If you are thinking about rebuilding greener after a total loss, green rebuilding and eco-upgrade endorsements explains the endorsements that pay for the upgrade.
Key takeaways
- Owned, roof-mounted panels are generally part of the dwelling and covered up to your dwelling limit. Ground mounts and carports usually fall under the other structures limit, 10% of Coverage A in the ISO form.
- With a lease or power purchase agreement, the contract decides who insures the equipment and who pays if it is damaged. Get it in writing.
- Tell your insurer before installation and raise the dwelling limit, or you may be underinsured and penalized at claim time.
- Severe hail is the main insured risk to panels, so check the module hail rating and your wind/hail deductible and roof endorsement.
- Faulty installation and wear and tear are excluded. Those are warranty issues, not claims.